The Increasing Cost Of Education

A college education is an investment that pays off. According to The College Board's
annual report, Trends in College Pricing, median annual income for bachelor's
degree recipients is 80 percent higher than median income for those with only
a high school diploma. Over a lifetime that difference exceeds $1,000,000.

Unfortunately, investing in a college education is seldom inexpensive. College
planning has become increasingly important over the last decade, as college
costs have skyrocketed at over twice the inflation rate.

College tuition and fees in the United States experienced an average annual
inflation rate of 8.7% over the past 20 years, according to Department of Labor
statistics. That's 3.8 percent more than the average annual inflation rate of
4.9% during that same period.

The College Board's annual report, Trends in Student Aid, indicates that almost
$134 billion in total aid from federal, state, and institutional sources was
available to help students to assist with tuition, fees, and other expenses
of attending collegean increase of 3.7% over the previous year, after
adjusting for inflation. Most of this increase, however, was in the form of
loans rather than grants, and most of the increased borrowing was unsubsidized.

The U.S. Department of Education estimates that slightly more than one-quarter
of fulltime undergraduate students live on campus. According to The College
Board, in 2007-2008 the average in-state tuition costs were $6,185 and $23,712
per year for four-year public and private universities, respectively. Room and
board charges charges averaged $7,404 for public and $8,595 for private universities.
These are real costs that should be looked at carefully when preparing to set
aside funds for college.

Often times, because it seems far off in the future, little thought is given
as to how to save and plan financially for a college education. However, it
is much easier to save while the child is growing up and pay for college from
our savings than to attempt to pay for college as the expenses are incurred,
out of income.

Material discussed is meant for general illustration and/or informational purposes
only and it is not to be construed as tax, legal, or investment advice. Although
the information has been gathered from sources believed to be reliable, please
note that individual situations can vary therefore, the information should be
relied upon when coordinated with individual professional advice.

This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, or accountant.